As predicted, last year proved to be challenging for the tanker market.

On several occasions earnings fell below fixed operating costs on many of the benchmark routes.

Rising bunker costs provided owners with a major headache but at the same time focused the market on two concepts - slow steaming and the advent of the eco ship.

While both of these concepts are not new, they certainly became two of the most talked about initiatives, particularly the eco ship, Gibson Research said in a report issued just before the holiday break.

On the supply side, while there has been a slowdown in the overall delivery profile, another 47 VLCCs hit the water while a record 47 Suezmaxes also entered service.

Tanker demolition was up on 2011's total at 44.1 mill dwt. The vessels sold for recycling included 67 first generation double-hulls. Lightweight prices in India during the 1st quarter of last year exceeded the $500 per lwt level, which may have tempted owners to sell.

However, prices softened throughout the year but still showed healthy levels at around $420 per lwt (India)). Impending legislation and rising fuel costs could provide the stimulus for the removal of more units this year.

With the exception of the MR sector, tanker ordering fell to a very low level. However, rumours about a wave of orders to support Chinese shipbuilding continued to circulate the market from time to time, thus far (thankfully) this has only amounted to a handful of VLCC orders, Gibson said.

Sales of secondhand tonnage have remained steady throughout the year and as asset values continued to decline, it was clear that there are owners waiting to pick off bargains, particularly with so much quality tonnage available.

With no let-up in financial pressures, yet more companies have had to seek protection from bankruptcy, or have at least been forced to restructure their finances. At times, this has involved selling assets to keep the balance sheets ticking over.

It is rare for a year to pass without politics influencing the tanker market. The ever tightening of sanctions on Iran has at times proved `entertaining', as the country continued to find ways to export its crude. Prior to the introduction of the 1st July sanctions, threats to crude supply, coupled with events in other Middle Eastern countries, pushed up oil prices and, as a consequence, fuel costs.

This year promises to be another eventful year for the tanker market as the increase in tanker supply is slowing down, but generally speaking, demand prospects still look fragile.

Hence, it may be another difficult year for many parts off the industry, but there are still opportunities and some bright aspects to focus on, Gibson concluded.

A survey of members of InterManager has identified the main concerns affecting the industry, as it begins the New Year.

In addition to fears about how challenging market conditions impact on operating budgets, vessel and crew managers are also concerned at the difficulties of finding and retaining quality staff  both at sea and on shore.

Responding to members' worries, InterManager plans to introduce a number of new initiatives this year to address training and recruitment matters, including the setting up of a young executives group.

InterManager president Gerardo Borromeo, who took the helm last October, said: "Today's young executives are tomorrow's leaders and we want to do all we can to support them and help them to develop their leadership qualities."

Bureaucracy remains a problem for the shipmanagement sector, particularly the burdens it places on time and resources.

InterManager said that it is supporting a number of projects to help, such as crew payment by `plastic money', as well as continuing to develop its KPI system to streamline and share best practices and improve efficiency  particularly important when budgets are stretched.

The organisation also said that it will focus its efforts this year on crew management matters  with a cadet scheme, a worldwide seafarers' survey and training and education initiatives in the pipeline.

Borromeo said: "The human element is key to successful shipmanagement and we must ensure we work together as an industry to raise standards and to encourage good staff  the best and the brightest  to enter and stay in shipping."

The InterManager survey of ship and crew managers also demonstrated that piracy and the smooth and successful introduction of the Maritime Labour Convention (MLC) were added concerns for shipmanagers.